Riding China’s green wave

Pollution in China has been a serious issue for some time, but it has now become one of the biggest sources of public discontent in the country.

Cleaning up China’s coal-dependent industries

As a result, it is a hot political issue. The Chinese government is focused on both reducing environmental damage (both in terms of atmospheric emissions and also water pollution), as well as making better use of the waste resource that is produced.

Germany is a global leader in environmental technologies, thanks to years of tough regulations and attractive incentives for alternative energy solutions. Germany is already China’s largest trading partner in Europe, while China is Germany’s in the Asia Pacific region, so both countries already understand what each can offer.

Reducing air pollution is a key objective. China’s coal plants already have pollution control technology installed, but many industries, particularly manufacturing, petrochemical and chemical industries are still heavy polluters.

Saving water in China’s coal industry

Water is another key issue. China’s coal industry is water intensive – this includes the mining, usage in power plants and also usage in associated heavy industries. Installing wastewater treatment solutions could help to avoid water shortage within the industry, ensure sufficient availability for the population and agriculture.

The big concern for German companies is to find a way to sell their products and services into the Chinese market, while also protecting their intellectual property rights – something that has proved an issue for a number of major companies in the past. The most likely route to market would be through partnerships/joint ventures with Chinese players or potential technology licence agreements (although these carry the risk of creating competitors for the future).

Well positioned to ride the wave

Thanks to their expertise and know-how, German companies are well positioned to benefit greatly from opportunities in China, India and developing Asia.